Motor Accident Claims, MACT, Indore

The chambers appear before the Motor Accident Claims Tribunal at Indore, both for claimants and, on instructions from general insurance companies, in the defence of claims.

The two routes to compensation

Section 166, a claim on fault. The ordinary route. The claimant must establish negligence on the part of the driver or owner of the offending vehicle. Compensation is assessed on the loss actually suffered, which in a death or permanent disability case is computed on the multiplier method.

Section 164, compensation on a no fault basis. Introduced in its present form by the Motor Vehicles (Amendment) Act 2019, this provides a fixed sum in cases of death or permanent disablement without the claimant having to prove negligence. It replaced the earlier scheme under Section 163A.

A claimant who elects the fixed compensation route cannot ordinarily then pursue a larger fault based claim on the same accident, so the election matters and should be made with advice.

How compensation is computed

In death and permanent disability cases the Tribunal follows the structured approach settled by the Supreme Court. In outline:

• Income. The established income of the deceased or injured, with an addition for future prospects depending on age and whether the employment was permanent.
• Deduction for personal expenses, according to the number of dependants.
• Multiplier, selected by reference to the age of the deceased.
• Conventional heads, for loss of estate, loss of consortium and funeral expenses.
• In injury cases, medical expenses actually incurred, loss of earning during treatment, loss of future earning capacity by reference to the disability assessed, and compensation for pain and suffering.

The insurer's position

An insurer's statutory defences under Section 149 are limited. In practice the questions that arise are whether the driver held a valid and effective driving licence, whether the vehicle was being used for a purpose not allowed by the permit, whether there was a breach of a specified condition of the policy, and whether the policy was in force on the date of the accident.

Where a breach is established, the position is commonly one of pay and recover: the insurer satisfies the award to the claimant and recovers from the owner. The chambers appear on these questions for insurers.

Procedure at Indore

A claim petition is filed before the Motor Accident Claims Tribunal having jurisdiction, which under Section 166(2) may be the Tribunal for the area where the accident occurred, where the claimant resides or carries on business, or where the defendant resides. Notice issues to the owner, driver and insurer. The police records, the first information report, the charge sheet, the mechanical inspection report and the injury or post mortem report form the core of the evidence.

Since the 2019 amendment the investigating officer is required to forward an accident information report to the Tribunal, which has shortened the early stages considerably.

Frequently asked questions

Is there a time limit for filing a motor accident claim?

The earlier position was that a claim had to be filed within six months, then that limitation was removed altogether. Following the Motor Vehicles (Amendment) Act 2019, Section 166(3) provides that no application for compensation shall be entertained unless it is made within six months of the occurrence of the accident. The date of the accident should therefore be treated as the start of a short and strict period.

Who pays the compensation awarded by the Tribunal?

Where the offending vehicle was insured and the policy was in force, the insurer satisfies the award. Where a breach of a policy condition is established, the Tribunal commonly directs the insurer to pay the claimant and recover the amount from the owner. Where the vehicle was uninsured, the liability falls on the owner and driver.

What documents are needed for a claim?

The first information report and charge sheet, the injury report or post mortem report, the disability certificate where permanent disability is claimed, medical bills and prescriptions, proof of income such as salary certificates or income tax returns, proof of the relationship of the dependants, and the registration and insurance particulars of the offending vehicle.

Can a claim be made if the injured person was partly at fault?

Yes. Contributory negligence reduces the compensation in proportion to the claimant's share of responsibility, but it does not defeat the claim. The Tribunal apportions liability on the evidence, and findings on contributory negligence are among the most commonly contested issues in these matters.

What is a hit and run case?

Where the vehicle responsible cannot be identified, compensation is payable from the scheme established under Section 161 of the Motor Vehicles Act for hit and run motor accidents, administered through the designated claims enquiry officer. The amounts are fixed and considerably lower than a full fault based award.